"Both Salesforce.com and Amazon use Red Hat to power their cloud infrastructure, which is how the company got this reputation as a cloud player, but at the end of the day, these public cloud providers account for just 5% of Red Hat's revenues," Cramer said.

For the most part, "Red Hat is similar to Oracle or SAP, in that if you're using their product, you need to store the software on your own servers within a datacenter room tucked somewhere in your office," Cramer explained

Therefore question becomes, "was the sell-off an over-reaction with the Street not understanding the business? Or is open source software less revolutionary than it used to be now that everyone seems to be switching to the cloud?"